The “equation of exchange” is a fundamental equation in economics that demonstrates the relationships among money supply, the level of price, velocity of money and the index of spending. MV = PQ. MV represents the expenditure (the money supply (M) times the velocity of money (V)…
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This can also be considered as the number of times that the currency is spent on finished products and services per year. PQ is the nominal GDP of the country (the level of price (P) times the physical amount of products and services (Q). Economists believe that changes in the supply of money especially improper monetary policy are the most significant factors that cause macroeconomic stability.
Importance of the stability or lack thereof, of the velocity of money directly relates to the control of the money supply (Thomas, 2005). If the velocity was always constant, then the money supply would be the single determinant of the level of national GDP spending. No policy instrument other than the central bank’s control would be needed to accurately control GDP spending. If the velocity fluctuates in a completely unpredictable manner, then Fed Reserve-engineering changes in M would have no predictable consequence on GDP spending. The control of the money supply would be a totally ineffective method of influencing GDP. To the degree that velocity is random the influence of FED reserve money supply control on GDP spending and general economic activity is compromised. If the velocity is random but is independent of the money supply and is relatively stable and subject to acceptable good prediction, then FED policy of controlling the money supply is greatly effective way of influencing GDP spending. Question two The structure of the Federal Reserve System Federal Reserve Banks: There are twelve Federal Reserve Banks from the Federal Reserve Districts. Each bank is a legally separate corporation owned by the commercial banks in its districts. The directors of individual banks recommend the allocation of discount rate which is then endorsed by the Board of Directors. These directors also select one banker from each district to serve the Federal Advisory Council. Other functions include clearing checks, help regulating banks, withdrawing damaged currency from circulation and replacing it with new ones as well as acting between local business communities. Member Banks: These are commercial banks that hold stock in the Federal Reserve Banks; commercial banks chartered by the Federal Government; and state banks chartered by state governments. Their major function is to hold reserves as deposits or vault cash at the Federal Reserve Banks. Board of Governors: consist of seven members appointed by the president and led by the chairman. All governors must come from different states and are voting members of the FOMC. They set reserve requirements, set bank regulations and select recommendations to set the discount rate. The board has authority over certain regulations unrelated to fiscal policy but have significant impacts on the monetary system. Federal Open Market Committee: The committee consists of the members of the Board of Governors, president of the New York Fed, and presidents from four other Reserve Banks. The major function of FOMC is to make decisions concerning the conduct of open market operations and hence controls the monetary base. The committee has the key responsibility of formulating monetary policy. Federal Advisory Council: comprises of the twelve representatives of the banking system. The council advices and consults with the Board of Governors on all issues within the board control. The Reserve Banks selects one representative from the district who normally serves for a term of three
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(“The Equation of Change Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
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(The Equation of Change Essay Example | Topics and Well Written Essays - 1250 Words)
“The Equation of Change Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1444847-macrofb.
The last 20 years or so have notably seen many hospitals change their institutional environments to reflect both changing times and needs. Some trends like shifting to prospective payments from cost related reimbursement, technological advancement and management of care plans among others have hugely influenced how hospitals are being managed today.
V= Vmax [S]/ Km + [S] (Sprott, 2001) Where; V represents the speed/time of the enzymatic reaction while Vmax represents the velocity of the saturation of the enzyme with the substrate. [S] represents the substrate concentration and Km is referred to as the Michealis constant. He above equation has calculated error term denoted as e1.
The cold equations tell of a story of the world on the space as people travel to other planet, which does not have an appealing lifestyle. In the utopian world there is no private property, everything is owned communally. People farm together, their goods are stored together in warehouses, and everyone has access without having to ask for it (More 20).
It can also be expanded as: assets less liabilities = shareholders' equity (revenue less expenses). The balance sheet of a business organization becomes the clearest manifestation of how this accounting equation is applied as this financial statement shows how its resources are financed by its stakeholders.
The NIOSH lifting equation was first provided in 1985 and later revised in 1985 which expanded its area of application in the field of biomechanical analysis. However, as with all other biomechanical assessment techniques, the NIOSH's lifting equation also was provided with its assumptions and limitations.
We assume the units of output represent a quantity of goods produced. e.g. one unit might represent 20,000 details! To find the company's profit equation, we need to find its total revenue and total cost equations and difference them!
(Notice how the signs of the TC equation changed when we removed the brackets!
Change directly fosters or indirectly encourages resistance to the new elements being introduced into the normal or usual way of doing things. Resistance is most noticeable in humans, whose daily activities are susceptible to
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